Considerations for Basket Pricing for Purchase Orders

You should be aware of the following considerations when working with basket adjustments for purchase orders:

Topic	Description
Ineligible orders	The R45750 program does not process basket adjustments for direct ship, transfer, or intercompany purchase orders.
Processing options for basket adjustments	To apply basket adjustments automatically in the P4310, P43060, P43011, or P43032 programs, you must set the Auto Basket Level Re-pricing processing option to 1 in the version of the Purchase Order Entry program (P4310) that you use to enter purchase orders. Other processing options affect basket adjustments, and you should review those prior to using basket adjustments for procurement. See the following sections: "Processing Options for Basket Adjustments at Order Release" Considerations for Free Goods
Cancelled quantities or amounts	When you process receipts for a purchase order and under-receive for a purchase order line, you might cancel the outstanding quantities and close the receipt line. Cancelling the unreceived amounts might cause the purchase order to no longer qualify for a basket adjustment that was applied to the purchase order. For example, suppose that your purchase order line has an order quantity of 100, and the order qualifies for an adjustment based on that quantity. If you receive 80 and cancel the remaining 20, the reduction in the quantity causes the order to no longer qualify for the adjustment applied to the order. When you process receipts, the system does not warn you that the adjustment that you applied to the purchase order is no longer valid for the order and does not adjust the records written to database table for the purchase order. If cancelling open amounts is a standard practice in your organization, consider applying the basket adjustment at the time you process receipts. See Also: Purchase Order Basket Adjustments After Receipts.
Applying basket adjustments to purchase orders and receipts	The Transactions to be Processed processing option in the R45750 program controls whether the program processes only purchase orders, only receipts, or both purchase orders and receipts. See Applying Basket-Level Adjustments to Purchase Orders and Applying Basket-Level Pricing to Receipts.
Orders with line and basket adjustment schedules	If a purchase order has lines that are eligible for line-level adjustments as well as the entire order being eligible for basket-level adjustments, the system applies the line adjustment before it applies the basket adjustment.
Cancelled basket adjustments	You can cancel basket adjustments using the Cancel option on the Form menu of the Purchase Order Detail form, and you can effectively cancel adjustments by changing the adjustment schedule assigned to the order and then applying the new adjustment. After you cancel a basket adjustment, the system displays the lines on the purchase order with the original unit cost.
Adjustments applied to both purchase orders and receipt lines	You can apply basket adjustments to receipts for purchase orders to which you applied a basket adjustment. The system does not change the extended costs on the purchase order when you apply the receipt adjustment, and does not change the purchase order record other than to update the quantity received.
Multicurrency	The report output for the R45750 program includes the original and adjusted amounts in the transaction currency.
Processing messages	You can process purchase order messages from the MRP Detail Message Review program (P3411) and the MRP/MPS Detail Message Processing program (R3411). Processing the messages creates the purchase order. You can specify versions of the P4310 program in the P3411 and R3411 programs. If the Auto Basket Level Repricing processing option in the P4310 program is set to 1 to enable basket adjustments, the system applies basket adjustments according to the adjustment schedule associated with the orders.
Free goods	You can add free goods to purchase orders that have basket adjustments. See Working With Free Goods in Basket Adjustments.
Kit and configured items	The system does not apply basket adjustments to lines with a stocking type of C (configured) or K (kit), and for which the method of costing is 4; or to kit or configured components.

Purchase Order Basket Adjustments After Receipts

You might need to apply a basket adjustment to a purchase order that has received or partially received lines. The Re-price Orders with Received Lines processing option controls whether the R45750 program enables you to apply an adjustment to an order with received lines. If you leave the processing option blank to enable repricing of purchase orders, the program reprices only the purchase order lines with no receipts. Received lines are included in the calculations to determine if the order qualifies for the adjustment. If you enter 1 in the processing option to prevent the order from being repriced, the system does not process adjustments for purchase orders with any receipts.

When an order line is received and open, the R45750 program uses the quantity ordered in the accumulations. If the order line is received and closed, the program uses the quantity received in the accumulations.

When you apply a basket-level adjustment to an order with receipts, the unit cost is not changed for a line that is either fully or partially received. The unit cost is updated for lines with no receipts if the line qualifies for the adjustment.

If an over- or under-received amount causes a change in the quantity so as to re-qualify for a different adjustment, the price history will reflect the new adjustment amount on the basket-level adjustment records but only for lines that have not been received.